Bitcoin slid to a 16-month low on Friday, testing critical support around $60,000 as global technology stock selloffs intensified, forcing investors to unwind risky positions across multiple asset classes. The cryptocurrency briefly dropped to $60,008.52 before recovering to $64,153.24, swinging sharply in volatile trading.
Bitcoin 16-Month Low Amid Tech and Precious Metals Selloff
The world’s largest cryptocurrency has been declining since October 2025, prompting analysts to question whether this is a warning signal or merely coincidental. Ether also slid to a 10-month low of $1,751.94 before rebounding to $1,891.27. Overall, the crypto market has lost approximately $2 trillion in value since its peak of $4.379 trillion in early October, with more than $1 trillion wiped out in the past month alone.
Chris Weston, head of research at Pepperstone, said, “A lot of these big crowded positions are being unwound very, very quickly.” Joshua Chu, co-chair of the Hong Kong Web3 Association, added that the market is now witnessing the consequences of over-leveraged bets and insufficient risk controls.
Outflows from ETFs and Weak Investor Sentiment
Investor confidence in cryptocurrencies has been eroded by a series of outflows from U.S. spot bitcoin ETFs. Deutsche Bank analysts reported outflows exceeding $3 billion in January, following additional withdrawals of $2 billion and $7 billion in December and November. These movements coincide with broader volatility in tech stocks and precious metals like gold and silver, which have seen sharp corrections due to speculative buying.
Implications for Crypto Markets
Despite the sharp declines, experts emphasise that the Bitcoin 16-month low does not indicate the demise of cryptocurrency markets but reflects adjustments after months of leveraged growth and AI-fueled enthusiasm. Analysts caution that investors need to manage risk more prudently, particularly in high-volatility assets such as Bitcoin and Ether.